Expert comment: April 2018

“We are seeing generational change in the golden postcodes of Mayfair, Marylebone, Kensington and Chelsea. New build is increasingly in favour, both among domestic and overseas buyers, as the wealthy become younger and more transient.

New schemes offer a more lock up and leave solution with full security and the convenience of underground parking. Amenities and simplicity are high up the agenda for these buyers. Their benchmark for buying is often based on what they have experienced in hotels.

There is no pattern as to where buyers are coming from – we sold to 75 different nationalities last year – but many come from cities where they only understand new build. Quintessential London architecture doesn’t provide what they need.

The result is that the price gap is widening between existing and new-build stock, with the premium now 10-30 per cent, or more, depending on the area. We are also seeing the democratisation of postcodes as London is a very product-led market.”

Sarah McIntyre, head of lettings, Harrods Estates

“Coming into spring, the London lettings market is seeing growth, with more applicants registering for long and short-term lets and stock levels are meeting this demand. Tenants looking to rent within a new development are drawn to the excellent views, natural light and reduced noise as well as lift access and the hassle-free benefit of everything being new. New developments provide all of this amongst many other desirable features such as reduced energy costs and hotel-style amenities including swimming pools, gyms and 24-hour concierge services.

Ultra high net worth tenants and single young professionals will usually gravitate to these types of developments due to the high level of security on offer, including CCTV, fob key entrance systems and in some cases, building managers on site. At present, we are seeing a healthy variety of different rental properties, including a number of new-build developments, period conversions and large family homes, providing something for everyone.”